FraudNews
10-13-2013, 09:04 PM
Sourin Babayan, a construction contractor, is facing numerous fraud charges after he allegedly stole $81,000 in wages from his employees for completed work on the Costa Mesa state development hospital.
The 64-year-old Glendale resident was recently indicted on 19 counts of forgery and fraud, 14 felony counts of taking and receiving part of a worker’s wage on a public works project, seven counts of dissuading a possible prosecution witness and two felony counts of attempted fraud.
According to prosecutors, Babayan owns SBD Construction, and was contracted by the DJM Construction firm to mount fire sprinklers for several multi-floor buildings for nearly $820,000. Sometime in the project, he took money from the firm to pay the employees and then asked those employees to pay some of the money back.
It’s alleged that the employees were intimidated into doing this by threats of being fired. According to prosecutors, he allegedly used the money from the 17 supervised employees for his personal gain.
After DJM dropped Babyan’s firm, it’s alleged that his employees were invited to the home to get their final paychecks. However, prosecutors said, he allegedly tried to dissuade them from serving as prosecutor witnesses in the case.
Employees for SBD Construction contacted the district attorney in Orange County, which prompted the investigation.
California’s Division of Labor Standards Enforcement did their investigation and did a civil wage and penalty assessment to assist employees in receiving the full wage they deserve.
If Babayan is convicted, he could face nearly 58 years behind bars.
He has an arraignment scheduled for Oct. 18.
The 64-year-old Glendale resident was recently indicted on 19 counts of forgery and fraud, 14 felony counts of taking and receiving part of a worker’s wage on a public works project, seven counts of dissuading a possible prosecution witness and two felony counts of attempted fraud.
According to prosecutors, Babayan owns SBD Construction, and was contracted by the DJM Construction firm to mount fire sprinklers for several multi-floor buildings for nearly $820,000. Sometime in the project, he took money from the firm to pay the employees and then asked those employees to pay some of the money back.
It’s alleged that the employees were intimidated into doing this by threats of being fired. According to prosecutors, he allegedly used the money from the 17 supervised employees for his personal gain.
After DJM dropped Babyan’s firm, it’s alleged that his employees were invited to the home to get their final paychecks. However, prosecutors said, he allegedly tried to dissuade them from serving as prosecutor witnesses in the case.
Employees for SBD Construction contacted the district attorney in Orange County, which prompted the investigation.
California’s Division of Labor Standards Enforcement did their investigation and did a civil wage and penalty assessment to assist employees in receiving the full wage they deserve.
If Babayan is convicted, he could face nearly 58 years behind bars.
He has an arraignment scheduled for Oct. 18.